Exculpatory Clause

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Definition of 'Exculpatory Clause'

An exculpatory clause is a provision in a contract that releases one party from liability for certain acts or omissions. These clauses are often used in contracts between businesses and consumers, as well as in employment contracts.

Exculpatory clauses can be very broad, releasing a party from liability for any and all acts or omissions. However, they can also be more limited, only releasing a party from liability for certain specific acts or omissions.

Exculpatory clauses are generally considered to be valid and enforceable, as long as they are not unconscionable. However, courts will sometimes find exculpatory clauses to be unconscionable if they are too broad or if they release a party from liability for intentional or grossly negligent acts.

There are a few things to keep in mind if you are considering signing a contract that contains an exculpatory clause. First, you should carefully read the clause to understand exactly what it is releasing you from liability for. Second, you should consider whether the clause is unconscionable. If you believe that the clause is unconscionable, you may be able to negotiate with the other party to remove or modify the clause. Finally, you should be aware that even if an exculpatory clause is valid and enforceable, it may not be enough to protect you from liability. If you are involved in an accident or other incident, you may still be held liable for your actions, even if you are released from liability under the contract.

Exculpatory clauses can be a useful tool for businesses and consumers to protect themselves from liability. However, it is important to be aware of the potential risks of these clauses before you sign a contract that contains one.

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